Iran’s REFAH Bank Launches “Horizon Plan” to Boost Economic Access with Zero-Interest Loans
In a significant move to enhance financial inclusion and support national economic resilience, REFAH Bank has unveiled its new “Horizon Plan,” simplifying access to substantial zero-fee Qard-al-Hasan loans for citizens and businesses. This initiative underscores the nation’s commitment to fostering a resilient and self-reliant economy.
A New Financial Horizon
The Horizon Plan, launched in November 2024, is a flagship program designed to expand access to interest-free banking facilities and strengthen the financial capabilities of the populace. The plan allows individuals and micro, cooperative, and knowledge-based companies to access loans of up to 400 million Tomans without the need for heavy initial deposits, focusing instead on maintaining an average account balance.
Eligibility and Broad Reach
The plan is structured to benefit a wide cross-section of society, aligning with broader economic objectives. Eligible applicants include:
- Individuals with active Qard-al-Hasan accounts at REFAH Bank.
- Micro-enterprises, cooperatives, and knowledge-based companies.
- Employees of companies and institutions that are partners of the bank.
A unique feature of the plan permits both individuals and companies to transfer their unused account balance privileges to first-degree relatives or, in the case of companies, to their employees, thereby extending the plan’s benefits more broadly through established social and professional networks.
Key Loan Conditions and Structure
To qualify for the 400-million-Toman facility, applicants must meet straightforward criteria: maintaining a stable average account balance over the preceding 1 to 12 months, having no overdue bank debts, and providing one of several accepted forms of collateral, such as a salary-deduction guarantor or a positive credit score.
The loan structure is notably flexible:
- Loan Ceiling: 400 million Tomans for individuals; 750 million Tomans for eligible companies.
- Service Fee: Ranging from 0% to a maximum of 4%, determined by the applicant’s account history and credit score.
- Repayment: A generous repayment period of up to 60 months, making monthly installments manageable. For instance, a 400-million-Toman loan with a 0% fee over 60 months would result in a monthly installment of approximately 6.6 million Tomans.
Strategic Economic Empowerment
The Horizon Plan is more than a financial product; it is a strategic tool for economic empowerment. By offering long-term, low-cost credit, the plan aims to reduce financial pressure on families and provide a stable foundation for small businesses and innovative companies to grow. This initiative is a clear example of the nation’s banking sector actively contributing to economic stability and development.
Streamlined Application Process
Interested applicants can easily register for the Horizon Plan through two primary channels: by visiting any REFAH Bank branch nationwide or by contacting the bank’s customer service center for guidance. The required documents are standard, including a national ID card, birth certificate, and relevant financial or employment verification.
With its focus on accessibility, flexibility, and social solidarity, REFAH Bank’s Horizon Plan represents a proactive step in strengthening the economic fabric of the nation, ensuring that financial resources are channeled effectively to support the goals of a resilient and prosperous society.